Russia’s economy is back on its feet
There's a reason for its resilience
IN EARLY APRIL we pointed to preliminary evidence that the Russian economy was defying predictions of collapse, even as Western countries introduced unprecedented sanctions. Recent data further support this view. Helped along by capital controls and high interest rates, the rouble is now as valuable as it was before Russia’s invasion of Ukraine in late February (see top chart). Russia appears to be keeping up with payments of its foreign-currency bonds.
The real economy is surprisingly resilient too. True, Russian consumer prices have risen by more than 10% since the beginning of the year, as the rouble’s initial depreciation made imports more expensive and many Western companies pulled out, reducing supply. The number of firms late on their wage payments seems to be growing.
This article appeared in the Finance & economics section of the print edition under the headline "‘Tis but a flesh wound"
Finance & economics May 7th 2022
- The Fed’s balance-sheet is about to shrink. Wall Street is not ready
- China’s erratic policies are terrifying investors
- Russia’s economy is back on its feet
- India begins the privatisation of its huge life-insurance company
- Watchdogs take a swipe at Apple Pay
- Desperate Lebanese depositors are taking their banks to court
- Will an ever feebler currency save or sink Japan’s economy?
- Who wins from carnage in the credit markets?
More from Finance and economics
America is in the midst of an extraordinary startup boom
How the country revived its go-getting spirit
Could America and its allies club together to weaken the dollar?
China would not be happy
Banks, at least, are making money from a turbulent world
It is once again a good time to work on a trading desk